Thai law states that foreigners (“farangs”) may not own land or property in Thailand in their own name. However a foreigner can own buildings. To purchase land in Thailand a foreigner has two options :
(a) the land is purchased on a 30 year leasehold with an option to extend that lease for further 30 year periods. The lessor cannot seize the property until the lease expires. The lease must be registered at the Land Registry and a fee is payable to them calculated on a percentage of the rent due under the lease for its entire term. The lease created will remain in force even if the property was sold.
(b) A foreigner may purchase the freehold of land by the formation of a company (Thai Limited company). The land will be owned by the company and not the individual. This is probably by far the most attractive means by which foreigners purchase land in Thailand. Thai law requires that the company has 51% Thai ownership but it is possible to amend the articles of association of the company to give  protection to foreign shareholders. These changes allow the foreigner to be the only director and also permit that director to have sole control of any contractual dealings of the company. 

Forms of Land Title

Ownership of land, possession and use are governed by the land Code BE 2497 (1954), the Land Reform for Agricultural Act BE 2518 (1975), the Civic and Commercial Code and by regulations issued by the Ministry of the Interior.

Land may be acquired by sales, hire-purchase, gift, inheritance or adverse possession. A sale of land must be made by a written document and must be registered by the Land Department Office to be effective.

There are broadly 4 types of Land Title in Thailand, they being Title Deeds (Chanote), Confirmed Certificate of Use (Nor Sor Saam Kor), Certificate of Use (Ngor Sor Saam) and Certificate of Possession (Sor Kor Nung) are common evidence of land ownership, possessory rights and other interests in land. An explanation of each follows.

Chanote (Title Deeds)

Freehold title with the owner able to leave the land unattended. Title deeds are registered at the Land Department in the province in which the land is located, and there is no waiting time required to transfer title. Chanote titles are accurately surveyed, plotted in relation to a national survey grid and also marked by unique numbered marker posts set in the ground. It is the long term goal of the Land Department, that all land in Thailand will be covered under the Chanote title system.

Nor Sor Saam Kor (Confirmed Certificate of Use)

This certifies that the person named on the certificate has the confirmed right to use the land, implying all requirements for the issuance of title deed have been met, and issuance of the title deed is pending. They may be sold, leased, used as mortgage collateral etc. The holder of this certificate cannot leave the land unattended for more than 12 years.

The Chanoted and the Nor. Sor. Sam. Kor. Are the only titles over which registerable right of ownership or lease can exist, and are as such the only ones that a prudent foreigner should consider.

Nor Sor Sam (Certificate of Use)

Similar to the above Confirmed Certificate of Use except that not all of the formalities to certify the right to use have been performed. Before a transfer can be made, a notice of intent must be posted and then 30 days public notice is necessary before any change of status over the land can be registered.

Sor Kor Nung (Certificate of Possession)

This recognises that a person is in possession of land but the Certificate does not imply that there are any rights associated which the possession. It is not transferable, but a person in possession may transfer physical possession and the new possessor may apply for a new Certificate of Possession.

 Sor Por Kor is a full title deed in that it is accurately surveyed, denoted by numbered pegs in the ground and can be developed and even mortgaged in just the same way as a Chanott title, but it has significant restriction in that it is a title granted as a personal right to the original holder and he/she MAY NOT SELL or LEASE that land. It can only be transferred to heirs under last will and testament.